1040829--3/2/2009--GAYLORD_ENTERTAINMENT_CO

related topics

{debt, indebtedness, cash}

{cost, contract, operation}

{cost, regulation, environmental}

{provision, law, control}

{acquisition, growth, future}

{competitive, industry, competition}

{condition, economic, financial}

{operation, natural, condition}

{investment, property, distribution}

{loan, real, estate}

{property, intellectual, protect}

{financial, litigation, operation}

{personnel, key, retain}

{system, service, information}

{stock, price, operating}

{regulation, government, change}

The current slowdown in the lodging industry and the economy generally will continue to impact our financial results and growth. The successful implementation of our business strategy depends on our ability to generate cash flows from our existing operations and other factors. Our hotel and convention business is subject to significant market risks. Unanticipated costs of hotels we open in new markets may reduce our operating income. Our hotel development, including our potential project in Mesa, Arizona, is subject to financing, timing, budgeting and other risks. There are significant risks associated with our future construction projects, which could adversely affect our financial condition, results of operations or cash flows from these planned projects. We will be required to refinance our credit facility by July 2012, and there is no assurance that we will be able to refinance our credit facility on acceptable terms. We may be unable to successfully complete acquisitions. Our real estate investments are subject to numerous risks. We are dependent on our four main hotel properties for the substantial majority of all of our revenue and cash flow. We could become subject to claims in connection with the 2007 sales of our interests in ResortQuest Mainland, ResortQuest Hawaii and Bass Pro Group, LLC. Hospitality companies have been the target of class actions and other lawsuits alleging violations of federal and state law. If we fail to comply with privacy regulations, we could be subject to fines or other restrictions on our business. Our properties are subject to environmental regulations that could impose significant financial liability on us. Any failure to attract, retain and integrate senior and managerial level executives could negatively impact our operations and development of our properties. We have certain minority equity interests over which we have no significant control, to or for which we may owe significant obligations and for which there is no readily available market, and these investments may not be profitable. We are subject to risks relating to acts of God, terrorist activity and war. The hospitality industry is heavily regulated, including with respect to food and beverage sales, employee relations and construction concerns, and compliance with these regulations could increase our costs and reduce our revenues and profits. Our substantial debt could reduce our cash flow and limit our business activities. The agreements governing our debt, including our 8% senior notes, our 6.75% senior notes and our senior credit facility, contain various covenants that limit our discretion in the operation of our business and could lead to acceleration of debt. Fluctuations in our operating results and other factors may result in decreases in our stock price. We are a holding company and depend upon our subsidiaries cash flow to meet our debt service obligations. To service our debt and pay other obligations, we will require a significant amount of cash, which may not be available to us. The efficient operation of our business is heavily dependent upon our information systems. Our certificate of incorporation and bylaws and Delaware law could make it difficult for a third party to acquire our company. Our issuance of preferred stock could adversely affect holders of our common stock and discourage a takeover.

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1040829--3/2/2009--GAYLORD_ENTERTAINMENT_CO_/DE